DUBAI - The Ministry of Finance (MoF) recently signed an agreement for the Avoidance of Double Taxation and Prevention of Tax Evasion with respect to taxes on income with Tanzania, as part of its endeavours to strengthen cooperation frameworks in tax matters, protect taxpayers from double taxation, and avoid impeding the flow of trade and investment.
Mohamed bin Hadi Al Hussaini, Minister of State for Financial Affairs, signed the agreement on behalf of the UAE, while Dr. Mwigulu Lameck Nchemba, Minister of Finance and Planning of Tanzania, signed it on behalf of Tanzania. The agreement was signed at the ministry’s headquarters in Dubai, in the presence of Abdullah Ahmed Al Obaidly, Director of Relations and International Financial Organisations at the MoF; and officials from both parties.
Al Hussaini stressed on the importance of consolidating the financial, economic, and investment relations between the UAE and Tanzania. This comes in line with both countries’ efforts to boost cooperation in tax fields, increase investment opportunities, encourage trade exchange, and promote development goals by diversifying sources of national income and providing full protection for goods and services.
Mohamed bin Hadi said, "The Ministry of Finance will continue to strengthen trade and investment ties with all its trade partners. This is by devising mechanisms that explain to investors the financial status of their operations in commercial, economic, and financial activities and any other activities in countries with which the UAE has active economic relations."
During the meeting, both parties deliberated means of bolstering bilateral relations and agreed on the need to continue enhancing joint cooperation and work in various fields. They also exchanged views on certain international issues of common interest.
Avoidance of double taxation agreements serve several purposes. They promote the development goals of the UAE and diversify its sources of national income, eliminate double taxation and fiscal evasion, remove the difficulties relating to cross-border trade and investment flows, and offer full protection to taxpayers from double taxation. That, in addition to avoiding obstructing the free flow of trade and investment, taking into consideration the taxation issues and the global changes, as well as encouraging the exchange of goods, services and capital movements.
To date, the United Arab Emirates concluded 139 Avoidance of Double Taxation Agreements.